Panic Simplifier ticks exhausted with type families

I've tried to compile my vinyl-like records with 7.10.2-rc1 and got:

ghc: panic! (the 'impossible' happened) (GHC version 7.10.1.20150612 for x86_64-unknown-linux): Simplifier ticks exhausted When trying RuleFired Class op rreplace To increase the limit, use -fsimpl-tick-factor=N (default 100) If you need to do this, let GHC HQ know, and what factor you needed To see detailed counts use -ddump-simpl-stats Total ticks: 225484Please report this as a GHC bug: http://www.haskell.org/ghc/reportabug

Attached self contained test compiles with 7.10.1, but fails with 7.10.2-rc1 when compiled with optimizations.